The IPO of CMR Green will open for subscription on Wednesday, with grey market signals indicating strong investor interest ahead of the issue.
According to market observers, the IPO is commanding a grey market premium (GMP) of around 33%, implying a potential listing price of about Rs 255-256 per share against the upper issue price of Rs 192.
CMR Green IPO dates and price band
The IPO will remain open for subscription from June 3 to June 5. The issue is entirely an offer for sale (OFS) of shares worth Rs 630.6 crore, meaning the company will not receive any proceeds from the offering. The company has fixed a price band of Rs 182-192 per share, with investors able to bid for a minimum lot of 78 shares.
CMR Green Technologies is India's largest non-ferrous metal recycler by installed capacity and held the highest market share in the domestic secondary aluminium market in FY25, according to an ICRA report cited in the prospectus.
The company operates 13 manufacturing facilities and supplies recycled aluminium alloys, aluminium billets, zinc alloy ingots and other recycled metal products. It commands an estimated 42%-45% market share in the cast alloy segment serving the automotive industry.
The business is positioned to benefit from the growing shift toward recycled metals as industries seek lower-carbon manufacturing solutions. According to the ICRA report, recycled aluminium generates significantly lower emissions compared with primary aluminium production while requiring substantially lower capital investment.
Financially, the company reported revenue from operations of Rs 6,666 crore in FY25, up 12% year-on-year, while profit after tax stood at Rs 155 crore, compared with a loss in FY24 that was largely attributable to a one-time goodwill impairment charge.
Ahead of the IPO, the company raised Rs 188 crore from anchor investors, with participation from domestic mutual funds, insurance companies and foreign institutional investors.
Swastika Investmart has assigned a "Neutral" rating to the IPO. The brokerage said the valuation of around 27 times FY25 earnings appears reasonable relative to peers and acknowledged the company's industry leadership and strong market position.
However, it flagged concerns around the issue being a pure OFS, customer concentration risks, dependence on a few key clients and relatively thin operating margins. Swastika said high-risk investors may consider the issue primarily from a listing gains perspective.
The IPO comes at a time when investor appetite for manufacturing and sustainability-linked businesses remains healthy, particularly in sectors linked to recycling, resource efficiency and the circular economy.
With a GMP of around 33%, market participants will closely watch subscription trends over the next three days to gauge whether the strong grey market sentiment translates into robust demand from institutional and retail investors.
